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As oil prices plummet, Saudi Aramco pursues $10bn loan

April 23, 2020 at 9:34 am

A picture taken on November 3, 2019 shows Saudi Arabia’s Aramco displayed on a stock board at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia [FAYEZ NURELDINE/AFP via Getty Image]

Saudi Aramco, the world’s largest oil-production company, has entered a decisive stage in its endeavour to obtain a $10 billion loan from a number of banks.

Aramco chose HSBC and Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to coordinate between the company and other banks, Reuters reported, citing anonymous sources.

The loan will help finance the acquisition of a 70 per cent stake in the Saudi Basic Industries Corp (SABIC) from Saudi Arabia’s Public Investment Fund, a deal worth $70 billion, Reuters added.

“Aramco did not comment on the choice of banks, but said it continued to review its financial options ‘as part of its normal course of business, while prudently preserving its pristine balance sheet and its resilience’.”

Reuters could not reach HSBC or SMBC for comment.

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